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Social Security Scheme Draws Lukewarm Response from Employers Due to Unclear Policies

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Social Security Scheme Draws Lukewarm Response from Employers Due to Unclear Policies
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May 12: The contribution-based social security scheme announced by the government with much fanfare has received only a lukewarm response from employers. Although the scheme seems to be ambitious, there has been little participation from the employers due to some ambiguous policies. The government has not been able to clarify the issue of pension under this scheme.

“The government has not clearly stated when and how the pension will be distributed,” says Shekhar Golchha, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

According to government data, altogether 2,536 employers have agreed to support the government in the new scheme as of now. Among them, the Social Security Fund of the government has shortlisted 1,281 employers. Meanwhile, 5,668 employees have filed applications for being listed in the scheme.

Golchha blames the drawbacks of the government for the lackluster participation of employers in the scheme. Although a majority of employers and workers were excited about the new scheme, they are still confused about the pension scheme due to the lack of clarity in its provisions, argues Golchha.

He says that the workers are hesitant to take part in this scheme as they have failed to obtain clear information about the pension provision.

“We tell the workers that they should be a part of this scheme, but they themselves are hesitant to join,” says Golchha. “How can we forcefully include them in the scheme against their will?” he asked.

Golchha says that the government must first make the employers as well as the workers clear about the provisions of the scheme.

Meanwhile, chief of the Central Discipline Inspection Commission of the General Federation of Nepalese Trade Union (GFONT), Bishnu Lamsal, said that the scheme has not seen enthusiastic participation of employers as well as workers due to “the wrong intention of some employers.”

“The government needs to inform the employers who have not yet turned up. It should also clarify if there are any ambiguities,” he said.

 

 

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